Joining Pre-existing International Production Networks : Implications for Indiaâ€™s Economic Integration to East Asia
This study provides a conceptual framework to explain what kinds of difficulties a late-follower will suffer from when it tries to join pre-existing International Production Networks (IPNs). We consider the total production cost minimization problem by a multinational company (MNC) in allocating locations of fragmented production processes across borders. From the clarification of IPNrelated costs, we draw out what structural disadvantages late-follower countries have and provide several policy implications to overcome these disadvantages with more targeted efforts. Especially we put Indiaâ€™s case in the conceptual framework of the IPNs and then look at the hurdles that make Indiaâ€™s participation in the East Asian IPNs hard and sluggish. Relevant data are provided in order to support the theoretical explanations.
|Date of creation:||Jun 2013|
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